be back tomorrow. see you then. bye-bye. ♪ ♪ >> shannon: the storm before the calm. israel and hamas work to get in the last shot before possible truce. this is "special report." ♪ ♪ >> shannon: good evening. i'm shannon bream in for bret baier. it's early morning right now in israel. what has become a long night of rumors and speculation. still, no formal cease-fire in conflict between israel and palestinians in gaza. the death toll is rising on both sides. so is the level of international pressure on them to get a deal done. correspondent david lee miller is in southern israel. good morning, davids. >> reporter: good morning. behind me is the iron dome missile defense system.

this evening, the israeli prime minister met with the secretary of state hillary clinton. he thanked her for the u.s. funding of the system. when it comes to a cease-fire, as of now, it remains illusive and only talk. it's become a familiar sound. air raid sirens in jerusalem. iranian rocket fired by militant in gaza landed on the outskirt of the holy city. ironically, the rocket fell near a palestinian village. tonight, rocket launched from gaza landed 45 miles away in suburban tel aviv. the farthest ever to fall in an israeli city. militants on tuesday fired more than 100 rockets. the israeli military suffered the first fatality when a seasonal was hit by a mortar this afternoon. raising the israeli death toll to five. one of the rockets that pep traited the iron dome defense system hit a store in the city of ashdod and sheered off the side of the building, decimating the structure.

there were no serious injuries. >> it's like rain. like it rains in new york state, just rain water, here it rains rockets. every day, every hour. rains tens of thousands of rockets in the city. it's unbelievable. >> another rocket pierced this wall of a fifth floor apartment. one man who lived here was working as a volunteer ambulance driver in the attac attack. >> i come in to help the others. now today, you can see -- they find me in my private home. >> israeli prime minister benjamin netanyahu said he is committed to trying to peacefully resolve the conflict but says israel will do what is necessary to protect its people. >> no country would tolerate rocket attacks against its cities and against the civilians. israel cannot tolerate such attacks. >> as the death toll in gaza reached more than 130. residents stayed off the street. today alone, israeli military

strikes killed at least 18 including two children. residents say they feel trapped with no place to seek shelter during the attacks. this family all sleep in one room in the center of their home. >> you cannot imagine how we feel now, when you hear the rockets and missiles. the israeli raids and palestinian buildings. i have a daughter. she is always hugged me because she is frightened. >> reporter: just the last hour the israelly military hit another 25 targets in gaza. militants in gaza fired at least four rockets in israel. it's against this backdrop that the secretary of state hillary clinton will be working with the israeli leadership and leadership in egypt to try and come up with a truce, one that she describes as being durable. shannon? >> shannon: we'll talk more with the panel about that, david. thank you. the violence in the middle east is stealing thunder from

president obama's asian visit and interrupting outgoing secretary of state hillary clinton's farewell tour. here is chief white house correspondent ed henry. >> secretary of state hillary clinton plunged right in to the last minute shuttle diplomacy. rushing from campodea to jerusalem. to meet with israeli prime minister benjamin netanyahu. >> america's commitment to israel's security is rock solid. and unwavering. that is why we believe it is essential to deescalate the situation in gaza. >> after a short rest, clinton will now head to ramallah early wednesday to meet with palestinian president mahmoud abbas. before flying out to cairo to consult with egyptian president mohammed morsi at the center of the efforts to bring durable cease-fire. the violence in gaza was jeff shadowing president obama's trip to asia, which was supposed to be a calm swan song enabling the outgoing secretary of state to bask over her work in countrys like burma.

instead, both spent much of their time in asia intensively dialing up mideast leaders. the president speaking with morsi three times in 24 hours. including aboard air force one on the way home to america. the president tan secretary both been on the phone, nonstop with regional leaders for a number of days. the purpose of her trip is to continue and intensify that engagement now face to face. >> the stakes for the president are enormous on the eaves of a second term. with analysts warping it may be the beginning of a much wider conflict between israel and iran. >> there is rise of al-qaeda and radical islam in the middle east that have taken advantage of the re-lutionnary change sweeping through the region. in the shadows here is the number one national security challenge, iran. >> for stability, the u.s. is relying on shaky morsi, member of the muslim brotherhood. two months after president said egypt is no longer an ally. morsi today but showing

leadership. two days a the republican senator lindsey graham threatped to block u.s. aid to egypt. >> egypt, watch you do and how you do it. teetering with the congress to have aid cut off if you incite violence between israelis and palestinians. >> $1 billion of u.s. aid can focus the mind of morsi who today accuse israel of aggression. raising questions if he can be the broker that former president hosni mubarak was. >> shannon: ed henry at the white house. thank you, ed. get insight on the potential cease-fire agreement, michael orrin. thank you for being with us today. i want to ask about the players in the negotiations now. start with hamas hamas. reuters is saying they have put things on the table. israel has yet to respond to what they proposed. is there anything you can tell us about that? >> hamas is saying that. i wouldn't take hamas as a credible source. listen, there is no secret

formula here. it's simple. hamas fired 100 rockets in the last week. in course of 2012, 700 rockets. these people live in constant fear. they have to stop. we have to create situation that terror quist not decide every month or week to open fire on half the population and paralyze our country. we have to create a situation where the iranians cannot smuggle in advanced weaponry in to gaza. by the red sea or over land from libya. >> shannon: how direct player is iran and what is playing out now? >> all the terrorist groups, hamas gets funds from iran, bic terrorist organization such as islamist jihad that are controlled and funded by iran. gaza is iranian outpost. we are fighting iran in gaza. 50 years ago the cuban missile crisis. united states was up against

cuba. it wasn't cuba. they were up against the sew yet union. we're not gaza. we are up against iran. >> shannon: secretary of state clinton again we talked about how she was winding down the time we assumed in a way to be a quiet farewell tour for her but not now. meeting with several folks. meeting with benjamin netanyahu. the next stop is ramallah with president abbas. what can you tell us if people have any impact and can there be influence on hamas and influencing them? >> hamas declared war as much on fatah, the organization that they have on israel. in 2007, hamas kicked fatah out of gaza. it threw a lot of fatah people off the top of roofs and shot them in the streets. i think the secretary is focusing op another effort by abbas for the u.n. but they can send a message out that he wants a

cease-fire. the way to reach conclusion of the conflict that has gone on is so many decade not through the firing or shooting or violence but through negotiations. >> shannon: will they listen to him? >> hamas has not listened to abbas recently. again, they declared war on fatah like against us. >> shannon: let's listen to the next leg of her trip taking her to egypt with president morsi. the leadership changed things in the region. how hopeful are you that be a neutral advocate in the process? do you think he is neutral in process? >> egypt in past played a constructive role. mediating between us and other factors in the region. we tend to focus on egyptian deeds, not egyptian words. we hope the deeds will continue to be constructive. >> shannon: at this point based on what you know and what you can share publicly,

do you think are closer to cease-fire or closer to israel moving in on the ground? >> you probably have to direct that question to hamas. if hamas stops firing at us, if they agree to be the mechanism that will prevent smuggling of iranian long range missiles to gaza. if we can create a situation will they not shoot at us when they feel like it and paralyze the country, we will, we will agree to that cease-fire. until that time, we have a right, shannon, duty to defend our citizens. we'll take all necessary and legitimate measures to make sure that our citizens live in peace. >> shannon: are you comfortable how clear president obama has been on the point? >> very much. president expressed his support for israel's right to defend itself. our right to choose how to defend ourselves. we have placed the blame on the shoulders of hamas. and spoken to prime minister benjamin netanyahu three times in the last week. >> shannon: we know this is a busy time for you. thank you for coming in. we appreciate it.

coming up, the first war on christmas story of the season in the grapevine. up next, seeking knowledge from the director of intelligence. fific. tv. gotcha. covered. whooooh. [ male announcer ] black friday will never be the same. with our 1-hour in-stock guarantee, get here between 10 and 11 and you're guaranteed to get these electronic gifts in time for christmas. the first and only place to go on black friday. walmart.

♪ >> shannon: four southern california men are charged with plotting to kill americans apt destroy u.s. targets overseas. the government said they wanted to join al-qaeda and the taliban in afghanistan. one of the suspects served in the u.s. air force for two years. two others converted to islam in 2010 and they later recruited the fourth suspect. the trekker of national intelligence apparently has explaining to do. top g.o.p. lawmaker wants answers about what was said following the terrorist attacks on the u.s. mission in benghazi two months ago. chief intelligence correspondent catherine herridge has our update. >> reporter: the republican chairman of the house intelligence committee mike rogers is now demanding an immediate explanation from the

nation's top intelligence official james clapper. the charge is that clapper made inconsistent statements to congress and the public on who was behind changes to the c.i.a. talking points that critics say minimized the role of terrorism in the benghazi attack. >> we do need to understand why the talking points did not present the truth of what we knew at the time. >> on thursday, classified session, fox news told clapper was "unequivocal that the changes were made outside the intelligence community and he didn't know who was responsible. late monday night, clapper spokesman said the intelligence community was responsible for the sub stantive changes. senior democrat on the house intelligence committee said after last week's classified hearings that the changes were made for security reasons. >> i think getting in to those specifics of those responsible concern the intelligence community might reveal classified information. >> in a statement today, congressman shift said clapper's timeline backs that up. former member of the bush administration says clapper

must now explain the genesis of the administration statement that video for the demonstration halftimeed by terrorist. >> -- halftimeed b hijacked by. >> he needs to say if he pressed the video theory on the white house and intelligence community and if so, did he do it at direction of the white house? >> along with changing al-qaeda to extremists the f.b.i. wanted to change in language from the u.s. knew islamic extremists were involved to there are indications. the new timeline does not address another inconsistency. after the attack, the diplomatic security agents were evacuated from the consulate to air base in germany. the f.b.i. learned from the consulate agents there was no demonstration and the single data point got the anti-islam video theory. >> shannon: thank you. last month, builders began work on homes and aparms since

july of 2008. construction starts up 3.6% from september to october. stocks were mixed after a big day monday. the dow lost seven. the s&p 500 and nasdaq were both up a fraction of a point. in tonight's fiscal cliff update, assuming a deal gets done sometime before the clock strikes midnight on morning of january 1, what exactly is going to get cut? chief congressional correspondent mike emanuel looks at the possibilities. >> capitol hill sources say meetings between the white house and key lawmakers have been very business like and there is clearly a path to solving the fiscal cliff problem without violating even's principles. part of addressing the issue is figuring out what president obama and congress are willing to cult. >> looking at redundancy throughout government. there are many ways to look at can you do it more effectively and efficiently and eliminate some of the redundancy that goes on. if you ask people, i asked people before, how many places did you do for the same service. they might tell me two, three, or four. that is ridiculous.

>> mentioned a former governor who had to balance state budgets say there can be savings at the pentagon where there are major increases on spending on private contractors in the wars in iraq and afghanistan. another former governor mike johans of nebraska who has been involved in the gap of eight bipartisan dev is it talks says it's time to go big. >> what is driving our spending is entitlement. it's so obvious. in what makes us non-come pettive is the tax code that is hopeless. we have to fix these things. if we are, if we have any hope of this economy improving over the long-term. >> tax reform won't get done by the end of the year but a budget expert says there could be creative way to aer a terptive to democrats who want upper income tax rates to increase. >> there is an inclination on one side to raise taxes because the president's arguement is the wealthy should make more sacrifice. but there is another option to that. that is instead of raising their taxes?

>> there is heart burden of proof on the democratic side because president obama put substantial entitlement reform on the table during last year's debt talks. sources say it might have been papered oaf in the campaign, fiscal cliff talks that could create enormous tension with lawmakers, and mr. obama's liberal base. shannon? >> shannon: mike emanuel thank you. well, still ahead, the human toll for people who are not fighting in israel and gaza. first, to rebuild or not to rebuild? after superstorm sandy. just no fun to drive. now, here's one that will make you feel alive. meet the five-passenger ford c-max hybrid. c-max says ha. c-max says wheeee. which is what you get, don't you see? cause c-max has lots more horsepower than prius v, a hybrid that c-max also bests in mpg. say hi to the all-new 47 combined mpg c-max hybrid.

>> shannon: tonight, rental car shortal by thanksgiving week. thousands of cars, including rep tall, drive in demand and higher prices for vehicles that are still available. if you own property in disaster zone there are also questions tonight about whether you should rebuild or even be allowed to. senior correspondent rick leventhal has thatory from staten island. >> new york city collected more than a quarter billion tons of debris in the aftermath of hurricane sandy. but the job isn't done yet. soon, at least 200 of the hardest hit homes may be demolished. residents are struggling to decide if and how they will rebuild. >> came back and up in of us could we have been devastated here. >> teresa's home is one of a thousand tagged with a red sticker labeling it unsafe to occupy. the stickers don't necessarily mean homes must be raised, leave manage like teresa with a lot of questions.

>> what kind of foundation to do we need to put. what beams do we need in the home. so that if we are hit ever again. close to this. some homes will be able to sustain it. >> lawmakers op staten island are divided op how to move forward. some are calling for a moratorium on building from six months to a year to be studies op topography, and impact on beaches and long--term interest of residents. proposals to require new home to be built with bricks or stilts with electrical systems high above ground. most say no matte matter what te city decides they are staying put. >> absolutely, rebuild. these are our homes. my family has been here since the 1920s. these are homes. a once in a lifetime event. we're coming back. >> how could we leave? we love them. >> it could be weeks before they're torn down but it will happen. residents say they know the neighborhoods will be altered dramatically and say in a good way.

better and stronger before. >> thank you very much. florida republican congressman allen west concedeed his re-election. he said there are inaccuracies in the results but it's clear the democrat murphy won. it lead to court appearances and two partial recount. he lost by about 2,000 votes. senator rugman has died and best known for the role in the ground-breaking budget balancing legislation in 1980s, the graham-rudman-holings law. passed away before midnight in washington hospital. cited complication from lymphoma. he was 82. a billion dollar effort to make driving arp washington, d.c. better gets off to a muchy start. a 60-year holiday tradition in california loses out in court. grapevine is next.

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>> shannon: fresh pickingsings from the political grapevine. there is no room at the inn or rather the parks for baby jesus this year in santa monica, california. federal judge has ruled the city can bar unattended nativity and seasonal displays in public places while a related lawsuit goes forward. the ruling likely ends a 60-year tradition for the naytivety scene. the churches say it's the erosion of first amendment for

religious speech. atheists praise it as an example of separation of church and state. freedom from religion says religion is innately divisive and doesn't belong to public parks. there is tax exempt churchs on every corner. why isn't that good enough? two weeks after the election we learn msnbc did not do a single negative story about president obama or a single positive one about mitt romney in the time week of the presidential campaign. that is according to a study on the project for excellence in journalism. finally, 40-year billion-plus-dollar transportation project opened with a bang. not in a good way. transportation secretary ray lahood lauded brand new express lanes in virginia as a model for american infrastructure. drivers have the option of paying a toll or carpooling the ride inaster moving traffic. it fluctuates depending on how busy the road is. over the weekend, there were reports of several crashesvoing multiple vehicles that were all caused by the

drivers swerving or making lane changes to avoid the toll lane. monday, in the first rush hour test police investigated a four-car collision at the start of the morning commute. transportation authorities are scrambling to make clear and more extended markings intending to my mize upbe safe lane changes. ♪ ♪ >> shannon: our top story at the bottom of the hour. cease-fire between palestinians and gaza and israel began 90 minutes ago. midnight local time. leland vittert on the human toll for people who are not fighting. >> reporter: fox news cameras traveled the streets of gaza city. you wouldn't know it's the most densely populated place op earth as the streets are empty. the shops closed. the only sound ambulances. [ sirenning ] in southern israel, air raid sirens pierced the silence of deserted cities.

>> you can't explain it. you don't know what it feels like until you have heard explosions around you. >> the streets of the city with hundreds of thousands of people are all but deserted. people only go out for what they absolutely need. in fact, the busiest store in town is the local pharmacy here. people don't mind waiting because the doors are double stick blast proof glass to protect them if the sirens went off. schools are closed. hospitals have a special situation. nurses like odelia must take care of their kids and their patients. >> we are living under pressure all the time. >> it literally takes a army to the problem. seasonals come and set -- soldiers come and set up day care inside bomb shelters at hospitals giving the kids of employees a childhood and situation that is anything but normal. in gaza, the near constant airstrikes carry an added threat. there are no warnings sirens.

families tape windows to keep the glass shattering. they go outside to pick up bread. >> if you see the people to go to the house, you get a little comfortable to get out. >> you would think in the hours that a cease-fire is in the works the firing would demin niche. just the opposite here. in the middle east. everyone wants to get in the last shots they can. hit whatever targets they are trying to hit. along the israel-gaza border, leland vittert, fox news. >> shannon: just a quick correction in introduction of leland vittert. we said there had been a cease-fire in place. that has been rumored all day. it's not in effect. the parties are still working on that. it's yet to come profruition. we will keep you updated if that happens. brit tapes joined france in formally recognizing the newly formed syrian opposition. u.s. has not gone that far. rebels seize headquarters near damascus after four days of

fighting. san franciscfrance ended cot operation in afghanistan. handover ceremony held at base northeast ofc of kabul. they promised to withdraw combat troops by the end of the year. if there is a cease-fire will it hold between the palestinians a sunrise we'll ask the foc fox all-stars when e return.

moment we draw symmetry between the victims of terror and the unintended casualties that result from legitimate military action against the terrorists, the minute that false symmetry is drawn, the terrorists win. >> the rocket attacks from terrorist organizations inside gaza on israeli cities and

sounds must end. and a broader cam restored. the goal must be a durable outcome that are motes regional stability anded a vances security and legitimate aspiration of palestinians and israelis alike. >> shannon: the trouble continues in israel gand san antonio as we await word there is a potential cease-fire on the horizon. bring in the special expanded panel to talk apt that. bill kristol editor of "weekly standard." mara liasson, political correspondent of national public radio. juan williams, columnist with the hill. syndicated columnist charles krauthammer. good to see all of you tonight. bill, i'll start with you. there are a lot of players that secretary clinton be negotiating with. we talk to ambassador orrin about this. what do you make of egypt's involvement here and how reliable or trustworthy a process do you think they will be in the process? >> we'll see that. is a huge question going forward from this. if, as appears to be the case, muslim brotherhood from egypt is not rally behind hamas'

defense and willing to broker what looks like will be a cease-fire in israel's interest, more than in hamas' they would perhaps stop the rockets raping down on israel. it's amazing. if you predicted a month ago or three months ago that the muslim brotherhood would take over egypt and has done nothing to help their alleged brothers in gaza, they would have an ambassador and haven't cut off relations, peace treaty seems secure and talk of egyptian now enforcing the been a on weapons smuggling to gaza more than in the past. that is a big question. i'm actually a little more optimistic after this week. about the future of egypt than a week or two ago. >> shannon: what what about palestinian leader mahmoud abbas? secretary clinton will meet with him. how much sway does he old over hamas? >> he doesn't hold any sway over hamas. there is a low-level zil war monk the palestinians. he controls the west bank and

they control gaza. he can't or won't or doesn't feel he is strong enough to make a deal, kind of unilateral deal with israel. that would have been the best outcome. to somehow isolate hamas and show that israel could make peace with the palestinians. get israel out of the west bank and have a palestinian state declared much rally acceptable. that can't happen, i guess bill's scenario is the most helpful one. if that is really what will happen. we know that mohammed morsi made the first trip to iran. if he truly does either brokeer a cease-fire and enforce it, and cut ties with hamas, that would be very positive thing. >> shannon: juan, talking with the ambassador, he doesn't seem to take hamas, he doesn't, he doesn't take them at their word. how can you negotiate,be have any legitimate negotiation with imposing group if you don't trust the basic things they have to say to you? >> that is why it's important to ve giant and morsi here as

sort of an intermediary. because you can tell by the interest on morsi's role use him to make a deal. the effort here, i think, this is the problem we have seen today with the language coming from turkey, israel as terrorist state, israel is a military, superior in the military means to anything that the palestinians can do. and it's playing badly in much of the arab world. it's seen as, in fact, playing badly in the western world. israel beating up on the inferior opponent. >> shannon: when is it surrounded on many sides by enemies what is it expected to do? should it be held against that it it can defend itself? >> the question is overkill. literally killing people -- the numbers are stunning. 130 plus palestinians dead. it's five israelis dead at

this moment. the question is then how do you negotiate a deal and what we see on the table is israel saying you have to stop the rocket fire, reasonablebe request. saying we have to address the smuggling of the weapons so this can't happen in the future. on the palestinian side saying you know what? we have to open up the trade corridors especially the sea ports. so far israel has not agreed to this. >> there is a p.r. battle going on as well. >> israelis always end up looking on the wrong side of this because the world media are on the palestinian side. and the gaza palestinians, hamas, very adept at the pornography of grief. they are quite useful. they kill civilians on the other side as terror groups do. they also invite the killing of their own people. as a way to win the propaganda war. that is why they put the weaponry, their rockets and their ammunition under houses. under schools. under hospitals and under

mosques. they know the israelis have to attack the weapons. that inethably despite the incredible scrupulousness and skill with which israel targets the attacks there is always going to be a rocket that will go awry. and then they will be able to show that on television. but it seems to me that on the largeer strategic issue, i'm not as optimistic as my colleagues are on the egyptian role. morrissey has been inciting the people against israel -- morsi has been inciting people against israel and president of turkey calling at it terrorist state. they are isolating israel rhetorically. the reason that morsi at least is talking about working on his cease-fire, is because he is worried about the congress and the united states cutting off aid, without which the government he leads will not do anything and might collapse. they're in economic chaos in that country. so it's our role, in fact, to

keep him in line by threatening to withdraw our aid on which he lives. but i'm not sure how capable he is. even if he promises to monitor the smuggling of weapons and not allow it in the gaza, even if he says he won't allow that. and they will police the border between egypt and the gaza, i'm not sure he can or he will. we may get a paper agreement. but i'm not sure it will hold at all. >> i wouldn't put too much weight on the agreement and the smuggle willing start again. from strategic point of view what does hamas and iran want to do here? weaken netanyahu at home. destroy israel confidence. or unity. they want to drive a when between the u.s. and israel. they wanted to rally the arab world or the muslim world against israel and lead to actual breaking of relations. support for iran. i think they probably failed in all three of those. netanyahu has been very adept, actually, in the last week. this is his first war i

believe, as prime minister. for all the talk of how militaristic he is, he never presideed over a war. he used a lot of force and he made clear his demands are reasonable. he has held off, which is obviously wise and desirable on the use of the ground troops. one hopes they don't have to go in. he may end up in a situation where the u.s. supported israel, where there is unity in israel. relatively speaking. where the arab and the muslim street haven't risen up. what is the big channel? iran. so, i think it's possible. this is the optimistic view but i mostly believe it. it's quite possible that netanyahu is more strongly positioned to deal with iran at the enof this conflict than ten days ago. >> i call that wildly optimistic. i think hamas has not lost anything. in effect it will come out of these negotiations gained something. we have don't know what it is now. it did this with utter impunity. that in and of itself is a victory. >> i just think that the arab street is still up. when you hear that turkish

prime minister calling israelis terrorists and you have the sense that charles calls it pornography but of the death of children among palestinians, there is great upset in the arab world. the question is can -- how does it play in syria? do iranians exploit it to their end? at the moment, if the grand troops can be restrained and netanyahu should be credited with responding to president obama on this there is some reason for optimism. >> shannon: all right. leigh it there on this topic. stick around, next up the director of national intelligence in the cross heirs over benghazi -- crosshairs oaf benghazi. black friday's here. do you think walmart can get you a great deal on the items you want? i don't know! let's go see. vizio 60" smart led for $688. that's a $310 savings. that is amazing! the first and only place to shop this black friday. savings start at 8pm thursday, more electronics at 10pm. walmart.

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let's not forget, ambassador

rice went on each show, every major news network five days later but it wasn't just ambassador rice. the president in his interview with cbs the day following the attack on univision, on the dade letterman show and before united nations did not call it a terrorist attack. >> shannon: republican senator kelly ayotte. here is adam schiff on the house side and said anyone who was listening it was clear from general petraeus and other intelligence officials who testified last week that the talking points were amended to protect classified sources of information. not subject to political spin by the white house or ambassador to the u.n. the director of national intelligence said there were no sub stantive changes made after they left the committee. back with the panel. do you think the circumstance is tightping around who made substantive changes now? >> i think that the dni

director clapper is going to have to explain, he now says he made them. or the intelligence community made them. he has to explain why he made them and why he said earlier they hadn't made them. but i think this will be explained. it's interesting because senator ayotte neglected to mention in the cbs interview later, clip came out of clinton saying that it might very well end up being terro terrorist. cb serb aired the part of the interview seeming to talk about video he mentioned it could have been terrorism, too. i don't think it's a full description of his interview. but yes, clapper is now going to have to come up with an explanation of why the intelligence community seems to have changed the story about the talking points. >> shannon: because, other folks who heard from him behind closed doors and chief among them, representative rogers said he gave us a different story last time we heard from him behind closed doors in congress. so what does it suggest to you, juan? was he lying then?

lying now? never lie? is it semantics? >> a lot of this is semantics but of course we're in the midst of a political fray here over the entire episode. there are people on the republican side who see this as tremendously danieling to president obama and -- danieling to thdamage --damagina administration and mastering al-qaeda. look at semantic since you point that out. they're important here. the difference is that in the document that susan rice basing remarks on she used the term "extremist" instead of al-qaeda. "tremists." that could include a range of people including al-qaeda but, of course, we know that ansar al-sharia in libya has someda. it's not clear they were taking directions from al-qaeda. but the difference between saying specifically we know this was an al-qaeda attack, or extremists.

they did not say we know it's al-qaeda there. indications it might be al-qaeda. that is the difference. semantics but to some people it's now the point of great controversy. >> shannon: if we are talking about changing a word, al-qaeda to extremist that thing what about the video? who included that? >> it's not that there was one word change. al-qaeda became extremist. that would be irrelevant. the story she told was a false narrative. it was about a mob inspired by a video. we know, herron reported that the f.b.i. knew two days earlier by asking ones who had been in libya and the ones we evacuated. i mean in the benghazi consulate. we evacuated them. they were on the scene. they saw what happened. they told the f.b.i. there was no demonstration at all. it's a fiction. so the whole story she told, demonstration got out of control. extremists or al-qaeda, who cares. it's false. that is what we're asking

about. how do you go from the intelligence community telling people on the friday before that this was a terrorist attack. to a completely false story on the sunday two days later that it was a video. that is the question. who changed it. and clapper is saying he changed a word. that means nothing. first of all, he said last week he didn't, nobody changed anything so now he changed the story. senator mccain said that. there was a change in story. but even if it's only, if he can explain that, there is the bigger question. the wholenaritive changed. >> shannon: that is, you know, more than a word change. because you mentioned senator mccain let me read what he said. "i participated in hours of hearing in the senate select committee on intelligence last week regarding the events of benghazi where senior intelligence officials were asked this very question and all of them, including the director of national intelligence himself told us they did not know who made the

changes." what where does that leigh us? >> with the administration misleading the countrybe for two weeks purposefully with the luke rative narrative about video and spin tainous demonstration, which is false -- spontaneous demonstration, which is false. that happens. now we know the truth, well-organized terrorist attack that succeeded unfortunately. you would get better for over the get back to debate the strength of terrorist group is in benghazi, what we should do about it or consequence of light footprint in foreign policy in benghazi, libya and elsewhere, so forth. some point, you know, we can go to clapper or the white house. i'm not sure how we will find out exactly who told ambassador rice to say what she said or who made the determination within the administration. let's go with the videonaritive. it was politically convenient to them. two months before the election. i put two and two together theto say it's politically convenient narrative. >> shannon: thank you. that is it for the panel but stay tuned for the president's travel on southeast asia and

what was waiting for him when he got home. bob, these projections... they're... optimistic. productivity up, costs down, time to market reduced... those are good things. upstairs, they will see fantasy. not fantasy... logistics. ups came in, analyzed our supply chain, inventory systems... ups? ups. not fantas who would have thought? i did.

we did, bob. we did. got it.

>> finally tonight, president obama is returning from a three-country asian tour where he met with many world leaders, including the prime minister of thailand. but perhaps on everybody in the white house was pleased at how friendly the two leaders looked on camera together. >> it looked like they were flirting with each other a little bit. look at the photos. take a look. look, she looks smitten there. oh, you're so funny! a little champagne. oh, look at that look there. now, here he is returning home. [ laughter ] >> he's not back yet. i'm sure that will not be the reaction from michelle. th